Canal+ Spain loses more than 50,000 DTH subs as profits and revenues tumble

Iñaki Ferreras | 31-10-2012

A tough first three quarters of 2012 has seen Canal+ Spain, lose a significant number of pay-TV subscribers.

In all at the end of the third quarter of 2012 ended 30 September, the satellite pay-TV operator’s owner, media group Prisa, reported operating revenues of €1.9975 billion, down 2% year on year, leading to a net loss of €31.45 million compared with a €17.9 million net profit for the same period in 2011. The company noted that a comparison of the results for 2012 and 2011 should consider special items such as the consolidation of Daedalus that was effective on 1 April 2012 and which amounted to accost hit of €54.37 million . Accordingly, adjusted net income would be €5.8 million.

In its pay-TV business revenue in the first nine months of the year amounted to €788.12 million and EBITDA reached €172.45 million, representing growth of 4.2% and 16.4% respectively. Satellite subscribers were down by 50,785 compared with September 2011, attributed to the weak economic situation in Spain and the recent VAT increase, the company offered in mitigation. Average satellite ARPU stood at €42. On a brighter note the company did point to growth in the over the top (OTT) and iPlus interactive TV business lines.

A third of Canal + Spain’s customers take the iPlus advanced STB, a slight increase on the figure at the end of the previous quarter. Another growth area going forward is HDTV. Currently, Canal + Spain offers 33 TV channels in HD, including Canal +, Canal+ Liga nd Canal + Golf HD.